Vardhman Textiles has released its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, as approved by the Board of Directors at its meeting held on May 7, 2026. The results were reviewed by the Audit Committee on May 6, 2026, and audited by Deloitte Haskins & Sells LLP, which issued an unmodified opinion on the standalone financial results. Pursuant to Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the financial results were published in "Desh Sewak" and "Business Standard" on May 8, 2026, as filed by Company Secretary Sanjay Gupta. The Board has recommended a dividend of Rs. 5.00 per share on fully paid-up equity shares, subject to approval by members at the Annual General Meeting.

Standalone Financial Performance

On a standalone basis, Vardhman Textiles reported a decline in profitability for the year ended March 31, 2026, compared to the previous year. Revenue from operations stood at Rs. 9,652.33 crores, while total income including other income came in at Rs. 9,927.75 crores. Profit after tax for the full year was Rs. 740.02 crores, compared to Rs. 879.07 crores in the previous year. Basic and diluted earnings per share for the year stood at Rs. 25.58, against Rs. 30.40 in the prior year.

The following table summarises the standalone financial results:

Consolidated Financial Performance

On a consolidated basis, which includes subsidiaries Vardhman Acrylics Limited and VTL Investments Limited, and associates Vardhman Yarns and Threads Limited, Vardhman Special Steels Limited, and Vardhman Spinning and General Mills Limited, the group reported consolidated revenue from operations of Rs. 9,869.05 crores for the year ended March 31, 2026. Consolidated profit for the period stood at Rs. 753.20 crores, compared to Rs. 886.72 crores in the prior year. Net profit attributable to owners of the company was Rs. 745.25 crores, against Rs. 883.27 crores previously. Consolidated basic and diluted EPS stood at Rs. 26.18 for the year, versus Rs. 31.05 in the prior year.

Segment Performance

The group operates across two reportable segments: Textiles and Acrylic Fibre. For the year ended March 31, 2026, the Textiles segment contributed revenue of Rs. 9,652.33 crores, while the Acrylic Fibre segment contributed Rs. 318.57 crores. After adjusting for inter-segment revenue of Rs. 101.85 crores, net consolidated revenue from operations stood at Rs. 9,869.05 crores. On a profitability basis, the Textiles segment reported pre-tax, pre-interest profit of Rs. 1,007.87 crores for the year, while the Acrylic Fibre segment reported Rs. 18.40 crores.

Balance Sheet and Cash Flow Highlights

As at March 31, 2026, standalone total assets stood at Rs. 13,343.10 crores, up from Rs. 11,899.82 crores in the prior year. Total equity on a standalone basis was Rs. 10,187.73 crores. On a consolidated basis, total assets were Rs. 13,865.55 crores, with total equity at Rs. 10,587.79 crores. Standalone net cash generated from operating activities for the year was Rs. 1,101.81 crores, while net cash used in investing activities was Rs. 1,513.60 crores, primarily on account of capital expenditure of Rs. 1,732.45 crores. Notably, property, plant and equipment increased significantly, largely due to the capitalisation of a new technical textile unit in Baddi and an additional processing line in Budhni, aggregating Rs. 570 crores, following commencement of commercial production on March 1, 2026 and March 7, 2026, respectively.

Key Notes and Regulatory Disclosures

During the year ended March 31, 2026, the company issued 1,07,000 equity shares having a face value of Rs. 2 per share under its Employee Stock Options Scheme. The Government of India, vide notification dated November 21, 2025, notified the Labour Codes, which consolidate and replace existing multiple labour legislations. In accordance with Ind AS 19, the company recognised past service costs of Rs. 23.58 crores in the quarter ended December 31, 2025, and an additional Rs. 8.90 crores in the current quarter ended March 31, 2026, both included under employee benefit expenses. Additionally, there was a reduction in tax expense in the current quarter due to the reversal of income tax provisions of previous years amounting to Rs. 16.98 crores, following the settlement of certain tax litigations. The results were submitted to BSE Limited and the National Stock Exchange of India Ltd in compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and were signed by S.P. Oswal, Chairman & Managing Director, on behalf of the Board of Directors.

Q4 FY26 Conference Call

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, 360 ONE CM Research organised a conference call to discuss the 4QFY26 results on Friday, May 8, 2026, at 04:00 p.m. IST. The management team represented at the call included Mr. Neeraj Jain (Joint Managing Director), Mr. Sushil Jhamb (Director Raw Materials), Mr. Rajeev Thapar (CFO), Mr. Mukesh Bansal (EVP – Fabric Marketing Head), and Mr. Varun Malhotra (Head of Finance). Participants could join using dial-in numbers +91-22-6280 1222 or +91-22-7115 8123, with international toll-free access available across multiple countries including the USA (18667462133), UK (08081011573), and Singapore (8001012045).

Vardhman Textiles Limited has announced a major capacity expansion for its Garment Unit situated in the state of Punjab, following a Board of Directors meeting held on May 7, 2026. The board approved the proposal to nearly double the unit's shirt manufacturing capacity, marking a significant step in the company's garment business growth strategy. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para B of Part A of Schedule III of the Regulations.

Capacity Expansion Details

The proposed expansion will substantially scale up the Garment Unit's production capabilities. The following table outlines the key parameters of the approved capacity enhancement:

The current Garment Unit is operating at approximately 95% capacity utilization, underscoring the operational need and strategic rationale behind the expansion decision.

Investment and Financing

The capacity addition will require an investment of approximately Rs. 125 crore, which the company intends to finance through a combination of internal accruals and debt. The targeted timeline for completing the proposed capacity addition is by the end of Financial Year 2026-27.

Strategic Rationale

Vardhman Textiles outlined several strategic objectives underpinning this expansion decision:

• Portfolio broadening: The capacity addition is expected to broaden the company's product portfolio.
• High-value buyer attraction: Enhanced capacity will strengthen the company's ability to attract high-value buyers.
• New order volumes: The expansion is aimed at securing new order volumes.
• Premium brand relationships: The move is intended to help build long-term relationships with premium international brands.
• Cost optimization: The expansion is also expected to optimize cost and capacity utilization.

Board Meeting

The Board of Directors meeting, during which the expansion was approved, commenced at 10:00 a.m. and concluded at 12:45 p.m. on May 7, 2026. The disclosure was filed in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026. The announcement was signed by Sanjay Gupta, Company Secretary of Vardhman Textiles Limited.